Home Loan Tax Benefit Calculator
Calculate your actual home loan tax saving under Section 24(b) and 80C, and see why the new tax regime removes most of it for a self-occupied house.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Home loan tax relief is the most over-quoted number in Indian property sales. Two deductions matter: Section 24(b) on interest, capped at ₹2,00,000 a year for a self-occupied house, and Section 80C on principal repayment plus stamp duty, inside the shared ₹1,50,000 limit.
The catch almost nobody mentions: under the new tax regime — the default since FY 2023-24 — neither is available for a self-occupied property. If you have not actively opted for the old regime, your home loan tax saving is very likely zero. Switch the regime below and watch the number collapse.
The two deductions
| Section | Covers | Annual limit |
|---|---|---|
| 24(b) | Interest — self-occupied | ₹2,00,000 |
| 24(b) | Interest — let out | No cap, but loss set-off against other income capped at ₹2,00,000 |
| 80C | Principal + stamp duty + registration | ₹1,50,000 shared with PF, insurance, ELSS |
The regime trap
Since FY 2023-24 the new regime is the default. It offers lower slab rates but removes almost all deductions, including 24(b) on a self-occupied house and the whole of 80C. You must opt out into the old regime to claim them. For a let-out property, interest remains deductible against rental income even in the new regime, though the loss cannot be set off against salary.
A worked example
₹4,00,000 interest and ₹1,20,000 principal, 30% slab, ₹50,000 of 80C already used, self-occupied, old regime: Section 24(b) is capped at ₹2,00,000, and 80C takes ₹1,00,000 of the remaining room. Total deduction ₹3,00,000 → tax saved ₹93,600 including cess. On the new regime the same loan saves ₹0.
Section 80EEA (an extra ₹1.5 lakh of interest) applied only to loans sanctioned between 1 April 2019 and 31 March 2022 and is not available on new loans. This calculator excludes it deliberately.
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Create your free property pageFrequently asked questions
Can I claim home loan tax benefit under the new regime?
Not for a self-occupied property — Section 24(b) and 80C are both unavailable. For a let-out property, interest is still deductible against rental income, but the resulting loss cannot be set off against salary.
What is the maximum home loan tax benefit?
Under the old regime, ₹2,00,000 of interest under 24(b) plus ₹1,50,000 of principal and stamp duty under 80C — ₹3,50,000 of deduction, worth about ₹1,09,200 at the 30% slab with cess.
Can I claim stamp duty under 80C?
Yes, but only in the financial year in which it was actually paid, and it competes with PF, insurance and ELSS inside the same ₹1.5 lakh cap.
Can both husband and wife claim?
Yes, if both are co-owners and co-borrowers and both contribute to repayment. Each claims in proportion to their share, so a couple can jointly claim up to ₹4 lakh of interest on a self-occupied property.
What about a property still under construction?
Interest paid before possession is not deductible in those years. It is aggregated and claimed in five equal instalments starting the year construction completes, still within the ₹2 lakh cap.